What are the tax implications for Australians who retire in Thailand and invest in properties there?

Australian Tax Implications Thailand Investment Properties Double Tax Agreement (DTA)Tax Residency Retirement in Thailand Real Estate Investment Foreign Income Digital Tax Laws

Nov 27, 2024

7 days ago

Rod ********

ORIGINAL POSTER

Hi

Any Australians here who are “retired” in Thailand and have investment properties in Thailand as a source of income?

What tax implications are there for Australia?  I know there is a DTA in place between the 2 countries. 

Considering owning several to create a “Thai money” income as well as the one we will live in.  And leaving other rentals in Australia as well. 

Any other advice, experiences and information would be appreciated!!

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TLDR : Answer Summary

An Australian expat inquiring about tax implications for owning investment properties in Thailand received various comments from the community. Key advice included understanding the DTA between Australia and Thailand, keeping property dealings separate between the two countries, and considerations about tax residency. Some participants suggested retaining Australian properties for income while avoiding purchasing in Thailand unless married to a Thai national. There was also caution regarding new digital tax laws. Overall, the conversation emphasized careful tax planning and residency considerations.

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Jim ********

Best to keep property ownership in Australia and use the income to fund your Thailand lifestyle, which is what I do. Retain your Australian Tax Residency so you will not be liable for taxation in Thailand. Don't even think about buying properties in Thailand

6 days ago

Rod ********

ORIGINAL POSTER

@Jim *******

retaining tax residency seems so wishy washy even my accountant can not confirm. Even though we plan to return to Aus to see family for 2-3 months a year.

6 days ago

Jim ********

@Rod *******

If you have a "permanent home" in Australia and visit at the frequency you mention, you will have no problems. I've done that for years. I've had dual tax residency, but Australia wins out because of the permanent home. Don't always listen to the "tax experts", I find it's best to enquire with the relevant tax authorities who will give advice and references free of charge.

6 days ago

Rod ********

ORIGINAL POSTER

@Jim *******

we plan to sell our residential home and have the one or two rental properties still. Do these count as a “permanent home”. Our mailing address and license etc we will use our daughters home for this.

6 days ago

Jim ********

@Rod *******

Yes just transfer everything to your daughter's address, and ensure you register on the electoral roll for that address. Keep bank accounts, driver's licence, anything "official" which ties you to that address will suffice. My situation is very similar, I use my daughter's address, although I own the house she lives in. I'd consider keeping your residential home and renting it out, and living off the income. Once you buy in Thailand, you are tying yourself to the country. Rents in Thailand are dirt-cheap compared to Australia. Think cashflow rather than owning real estate. I have five properties in Australia, but own nothing in Thailand. The Thai Tax Office would have an insurmountable task trying to show that I am a Thai Tax Resident, other than the 180 days.

6 days ago

Rod ********

ORIGINAL POSTER

@Jim *******

we would love to keep the family home but as it’s on acreage may present a headache having it rented out. Leaning more to keeping or permanent rentals we already have. As for rent what are we talking a month? We are wanting to end up in Krabi and rents, just with looking online seem a little high.

6 days ago

Jim ********

@Rod *******

This one looks promising

6 days ago

Rod ********

ORIGINAL POSTER

@Jim *******

yeh I’m in that one. Tents are a little hard to gauge anywhere from $15k baht to $70k baht a month. Thanks for your straightforward advice

6 days ago

Jim ********

@Rod *******

I'll go with the acreage. I had a 30-acre lot in the NSW Northern Rivers which I dearly would have loved to have kept, but the kids grown up are city dwellers now and have no interest, and you're totally correct, acreages are not good rental properties. Sell it and buy a unit in Ramsgate Sydney 👍. I don't know about Krabi, I'm a city guy, tried the provinces Phuket, Chiang Mai, Rayong, and even Khon Kaen, but always drift back to Bangkok. I'd suggest you join a Krabi expats Facebook group and post the questions there. You'll get a better idea of what kind of rents you can expect to pay.

6 days ago

Rod ********

ORIGINAL POSTER

@Jim *******

yeh I’m Northern river as well. Grafton. That’s a thought for us. I’m not 50 for a year or 2 so have plenty of time to plan

6 days ago

Jim ********

@Rod *******

I nearly bought at Coutts Crossing about 20 years ago, but in the end went for an acreage outside of Lismore. I still have a house in Lismore (outside of the flood thankfully). Bought it in 1997 for $95k, now valued at $700k. Funnily enough it's the best renter on my books. Close to the Uni and St Vincent's, any time it's advertised, I get a minimum of 20 applications. In the 27 years I've owned it, it's been vacant for a total of 16 weeks, always between tenants. I thought about offloading it years ago, but the voices in my head keep telling me to keep it! 😆

6 days ago

Reply to

Jim ********

Neale *********

Your money is a lot safer in your own country

7 days ago

Will ******

New tax laws here, everything going digital. If married to a thai do it, otherwise don't

7 days ago

Peter *********

Keep thai properties separate from Australia say nothing

7 days ago